Recent court orders bring to an end
an elaborate scheme that deceived consumers into buying overpriced manufactured
homes and agreeing to loans they couldn’t afford, Attorney General Roy Cooper
said today.
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In the case against Phoenix Housing Group and W.R. Starkey Mortgage, Cooper’s
office previously obtained nearly $4.3 million in refunds for consumers and
worked with federal authorities who brought criminal charges against several
individual defendants.
Cooper filed suit in November, 2009 against three
companies and several individuals seeking to stop the scheme permanently and
win back money for consumers. The companies involved in the case were:
- Phoenix Housing Group, Inc. (
land/home packages and arranged financing for buyers. The company,
headquartered in
as HomesAmerica and Southern Showcase Housing and has offices in
- K&B Homebuilders, Inc.(K&B) sold stick-built homes,
modular home/land packages, and foreclosed homes in
former
sales agents who used to work at the
store in - W.R. Starkey Mortgage, L.L.P (Starkey) of
financing for consumers who bought homes from
Recently, Cooper’s office won judgments against the three remaining defendants
in the case, Ike Vinson, Dennis Setzer, and Yo Xey Her. No jail time for any of them.
Under a consent judgment, Ike
Vinson, a former mortgage loan officer for Starkey, is banned from the
mortgage business in
and will have to pay $100,000 if he violates the judgment.
Under a default judgment, Dennis
Setzer, a former sales agent for
its
location, is banned from the manufactured and modular home business in
was ordered by the court to pay civil penalties of $125,000, $5,000 for each of
25 land/home packages he sold fraudulently.
Under a default judgment, Yo
Xey Her(also known as Joe Herr), a former sales agent for
the manufactured and modular home business in
court to pay civil penalties of $220,000, $5,000 for each of 44 land/home
packages he sold fraudulently.
